Bill > SB5289

This bill provides a sales and use tax exemption for qualifying farm machinery and equipment, modifying existing state tax laws to support eligible farmers. The bill introduces a new process where farmers must first pay the tax and then apply for a full remittance (reimbursement) from the state. To qualify, farmers must have gross sales or harvested agricultural products worth at least $10,000 in the previous tax year, or be new to farming with estimated agricultural product value of $10,000. "Qualifying farm machinery and equipment" is defined specifically as machinery used primarily for growing, raising, or producing agricultural products or providing bee pollination services, with several exclusions like vehicles (except farm tractors), aircraft, hand tools, and items with a useful life of less than one year. The bill requires farmers to keep records and obtain exemption certificates, and establishes that farmers can only apply for one remittance per calendar quarter. The tax exemption and remittance process will take effect on October 1, 2025, and aims to provide financial support to agricultural producers by reducing their equipment and machinery costs.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5289&Year=2025&Initiative=false